In India Ethanol, a type of industrial alcohol, is produced directly from Molasses. The Government offers subsidized loans to sugar mills for setting up an ethanol producing unit, covering 40% of the project cost thus encouraging higher Ethanol production. Since sugarcane production in India is cyclical, ethanol production also varies, thus not assuring the optimum supply levels needed to meet the demand at a given time. Lower sugar molasses availability and consequent higher molasses prices affect cost of production of ethanol, thereby disrupting ethanol supply for the blending programme at pre-negotiated fixed level. Increased consumption of Ethanol for these uses is expected to harden the prices of Ethanol and growth of this by-product of sugar in a healthy and profitable manner.
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Birla Sugar (Birla Sugar)
9/1, R.N. Mukherjee Road Birla Building 5th Floor , Lal Bazar, Kolkata, West Bengal
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